Particulars | Debit | Credit |
Advertising Expense | $ 800.00 | |
Prepaid Advertismsnt | $ 1,600.00 | |
Cash Account | $ 240.00 | |
Accounts Payable | $ 2,160.00 | |
( To Record the Advertmnet Expenses and its payment) |
$ 800 (2400/3)has been debited to advertimsent expense for the current month.
$ 1600 (2400-800) has been debited to Prepaid Expenses as it has been prepaid for 2 months and is an asset.
$ 240 has been credited to cash as there is an out flow of cash for payment of advertisment.
$ 2160 (2400-240) has been credited to Accounts payable as it is the outstanding balance payment
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